On Offshoring and Trade Deficit
Hamid Beladi and
Reza Oladi
Review of Development Economics, 2014, vol. 18, issue 3, 517-523
Abstract:
The paper constructs a general equilibrium model of North–South trade with nontraded goods, real exchange rate, and a continuum of components that North partly offshores to South. It is shown that a protectionary policy which restricts offshoring may have the unintended consequence of widening the trade deficit.
Date: 2014
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